1. Planning for Retirement

2. Your Retirement Vision Americans are living longer, healthier lives than ever before. The concept of retirement is changing. Most Americans spend much more time focusing on how to finance their retirement than they do planning for what that retirement will actually look like.

3. Your Retirement Vision Three Questions To Help Clarify What is Important In Your Life 1.Assume you have all the money you could ever need. What would you do with it? 2.Your doctor discovers that you have a rare illness. You’ll feel perfectly fine, but you will die within 5- 10 years. What would you do? 3.Your doctor tells you that you only have 24 hours to live. What did you miss? Source: The Kinder Institute

4. Retirement Income Sources Social Security Pensions Other Retirement Plans (e.g. 401(k)) Personal Investments Part-Time Work

5. You have one key decision to make when it comes to your Social Security benefit: “When to begin taking benefits?” Depending on the year of your birth, the Social Security office considers your ‘full retirement age’ to be somewhere between 65 and 67 years old. You can file for retirement benefits as early as age 62, but your monthly benefit amount will be permanently reduced from your full retirement benefit. Conversely, you can elect to postpone receiving benefits until age 70, and the government will reward that patience by paying you a larger benefit than you otherwise would have received. Social Security

6. When Should You Begin Taking Social Security? Example of monthly benefits: $2,000 Full Retirement Age (66) Minimum Age (62) Maximum Age (70) $1,500$2,64025% Reduction32% Increase This is an example of an individual with a full-retirement age of 66. In this case, he or she can elect to take their benefit up to 4 years early, subject to a 25% reduction in the monthly payment amount. OR, he or she can wait up to 4 years AFTER they reach their full retirement age, and be rewarded with a 32% higher monthly payment.

7. What is the right answer? There is no best answer that applies to everyone. The right answer for you will lie in your own unique life circumstances.

8. Your Retirement Finances: Managing Cash & Investments Plan and work towards keeping at Least 1 Year of Income Needed in Cash-Type Investments: Savings Accounts Certificates of Deposit Money Market Funds (3-5 Years is Ideal)

9. Investment Considerations Your cash reserve allows your remaining assets to be invested for greater returns Investing in bonds (i.e. purchasing IOUs from government or industry) provides relatively smooth but modest returns Investing in stocks (i.e. purchasing ownership in companies) provides greater returns over time but with greater risk for short-term loss

10. Investment Considerations Your investment allocation (% in cash vs. bonds vs. stocks) should be determined based on your: – Time horizon (life expectancy) – Risk tolerance (ability to sleep at night) Always stay well-diversified – Mutual funds bundle hundreds of investments – Company size – Geography

11. Keeping Investments Properly Allocated Consider mutual funds designed for retirement distributions Consider Annuities (Pay close attention to expenses and surrender charges) Diversified

12. Working After Retirement Reduce hours with current employer Work part-time, consult Start a business Be a temp Be creative!

13. Working After Retirement Why Keep Working? Retain benefits Earn income Stretch retirement assets Increase Social Security benefits (up to age 70) Stay healthy!

14. Lifestyle Changes Spend wisely Align spending with your values Be conscious of your spending – Budget – Use cash rather than credit THE OBJECTIVE IS TO REDUCE YOUR WASTEFUL EXPENDITURES BY ALIGNING YOUR SPENDING WITH YOUR VALUES.

15. Remember Develop a plan Implement the plan Monitor the plan and make adjustments when necessary

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